FINWIRES · TerminalLIVE
FINWIRES

Potential Middle East Ceasefire Lifts US Equity Futures Pre-Bell

By

US equity futures were higher pre-bell Tuesday as traders digested new efforts by mediators to put peace talks between the US and Iran back on track.

Dow Jones Industrial Average futures were 0.2% higher, S&P 500 futures were up 0.4%, and Nasdaq futures were 1.3% higher.

The US Central Command said it completed another round of attacks against Iran on Monday evening, as news reports said Tuesday that Iran-backed Houthis in Yemen are planning a naval blockade on Saudi Arabia.

Mediators are proposing a 10-day ceasefire between the two nations, giving hope that hostilities may de-escalate. Iranian Interior Minister Eskandar Momeni has asked Pakistan to resume its mediation role in the conflict and traveled to Islamabad for further discussions, according to a Reuters report.

Traders took note of the latest round of earnings, with Novartis (NVS) reporting lower core earnings and higher net sales for Q2.

Interactive Brokers Group (IBKR) is expected to report its Q2 financial results after the market closes. Analysts polled by FactSet expect adjusted earnings of $0.64 per share and revenue of $1.8 billion.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 1.3% at $90.36 per barrel and US West Texas Intermediate crude 1.3% higher at $83.55 per barrel.

The economic calendar is vacant.

Related Articles

Japan

US Equity Markets End Lower as Oil Prices Rise Amid US-Iran Escalation, Threats to Saudi Oil Shipments

US equity indexes ended lower on Monday as crude oil prices rose amid escalating attacks by the US and Iran in the Middle East and the Houthis declaring a blockade of Saudi Arabian oil shipments.* Iran said mediators have been in touch with proposals on how to ease hostilities with the US after nine days of clashes, while tensions remained high after a threat by the Tehran-backed Houthi group against Saudi Arabia, Bloomberg reported. Houthis in Yemen said Monday they were imposing a naval blockade on Saudi Arabia, Reuters reported.* The Conference Board's measure of leading indicators declined by 0.2% in June, larger than the 0.1% decrease expected in a Bloomberg-compiled survey.* August West Texas Intermediate crude oil rose $0.45 to settle at $82.94 per barrel, while September Brent crude, the global benchmark, was last seen up $0.78 at $88.88.* Global Payments' (GPN) improved buyback capacity, constructive channel checks on the Genius platform and the Worldpay business, low bar for execution, and rising investor interest create a meaningful rerating potential, Morgan Stanley said in a Monday research note. Shares were up 5.8%, the top gainer on the S&P 500.* Honeywell Aerospace (HONA) shares were down about 4.3%, the worst performer on the Nasdaq, after UBS initiated the stock with a neutral rating and a $231 price target. The company also said it has signed new contracts to deliver its Surface Alerts runway safety technology to Aeromexico.

Dow JonesNasdaq CompositeS&P 500$GPN$HONA
Japan

Update: US Equity Indexes Mixed, Crude Oil Climbs After Iran's Ally Threatens Saudi Energy Supplies From Red Sea Chokepoint

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes traded mixed as the Nasdaq Composite and the S&P 500 relinquished the bulk of intraday gains, while crude oil prices turned higher amid threats to Saudi Arabian crude oil supplies.The Nasdaq edged up 0.1% to 25,543.1 ahead of Monday's close, giving up most of its intraday gains. The S&P 500 slipped less than 0.1% to 7,451.2 after trading higher earlier in the session. The price-weighted Dow Jones Industrial Average, which is home to old-economy sectors, fell 0.6% to 51,856.5 and traded close to session lows.Consumer staples, utilities, and materials led decliners. Energy, communication services, and technology were the trio of gainers, albeit the latter two peer groups gave up most of the intraday gains.Iran said mediators have been in touch with proposals on how to ease hostilities with the US after nine days of clashes, while tensions remained high after a threat by the Tehran-backed Houthi group against Saudi Arabia, Bloomberg reported. Esmail Baghaei, the Islamic Republic's foreign ministry spokesman, said "ideas from some mediators have been conveyed" to Tehran, without giving further details, according to the news report.Houthis in Yemen said Monday they were imposing a naval blockade on Saudi Arabia, Reuters reported. The full closure of the Bab el-Mandeb strait would reduce global oil supply by 7% as it would leave most of Saudi oil exports unable to leave the region, the news report said. The disruption would add to the reduction in oil flows from the war, which has already cut shipments by 10% of global supply, it added.The front-month US West Texas Intermediate rose 0.6% to $83.01 a barrel, while global benchmark North Sea Brent climbed 1.2% to $89.18 a barrel, after both crude types traded lower earlier in the session.Most US Treasury yields rose, with the 10-year advancing 5.9 basis points to 4.6%. The two-year jumped 5.5 basis points to 4.22%.

Dow JonesNasdaq CompositeS&P 500
Japan

Update: US Equity Indexes Mixed as Growth Sectors Help Lift Nasdaq, S&P 500

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes traded mixed, with communication services and technology sectors helping lift the Nasdaq Composite and the S&P 500.The Nasdaq rose 0.9% to 25,752.1, with the S&P 500 up 0.5% to 7,493.2 in midday trading Monday. The price-weighted Dow Jones Industrial Average, which is home to old economy sectors, fell 0.2% to 52,065.3.Consumer staples, materials, and healthcare led decliners. Energy was among the top three gainers as investors weighed geopolitical developments.US Secretary of State Marco Rubio said Sunday night the US "remains open" to talks despite the weekend's violence, and an Iranian official said their side was similarly open to discussions, CNN reported.Iranian Interior Minister Eskandar Momeni is heading a high-level delegation to neighboring Pakistan at the invitation of his Pakistani counterpart, news reports said Monday. The trip comes after Iran's Foreign Ministry announced mediators continue to exchange proposals to get peace talks back on track after nearly two weeks of bombardment.The front-month US West Texas Intermediate fell 0.6% to $81.32 a barrel, and global benchmark North Sea Brent slipped 0.2% to $87.93 a barrel.Meanwhile, Yemen's Iran-aligned Houthis said on Monday they were imposing a naval blockade on Saudi Arabia, a move that widens the threat to global energy supplies and trade beyond the Gulf, Reuters reported.Most US Treasury yields rose, with the 10-year jumping 4.9 basis points to 4.59%. The two-year surged 4.7 basis points to 4.22%.

Dow JonesNasdaq CompositeS&P 500